Anti-dumping duty to boost domestic solar manufacturing

Solar manufacturing in India, which had been crippled by the predatory trade practices of a few countries, is likely to receive a major boost due to the recent decision of the Directorate General of Anti-Dumping and Allied Duties – Ministry of Commerce recommending anti-dumping duty on solar modules, panels and glass exported from USA, China, Malaysia and Taiwan.

The anti-dumping duty recommended by the Directorate General of Anti-Dumping and Allied Duties ranges from 11 cents per watt peak to a maximum of 81 cents per watt peak. The decision to recommend anti-dumping duty was taken following conclusion of an investigation initiated way back in November 2012. Earlier, the Indian Solar Manufacturers’ Association, which represents 25 domestic solar manufacturers and over 80 percent of the installed production capacity for solar cells, panels and glass in the country, had filed an application before the Directorate General of Anti-Dumping and Allied Duties alleging dumping of solar cells, whether or not assembled partially or fully in modules or panels or on glass or some other suitable substrate originating in or exported from China, Malaysia, Taiwan and USA. Taking into account the evidence provided by ISMA in support of its application, the Directorate General of Anti-Dumping and Allied Duties began an investigation.

The findings of the investigation revealed that the product under consideration had been exported to India from the subject countries below its normal value, resulting in dumping. Further, the domestic industry suffered material injury due to the dumping, the findings concluded.

The Directorate General of Anti-Dumping and Allied Duties noted in its findings that the purpose of anti-dumping duties, in general, was to eliminate injury caused to the domestic industry by the unfair trade practices of dumping and re-establish a situation of open and fair competition in the market.

“Imposition of anti-dumping measures would not restrict imports from the subject countries in any way, and, therefore, would not affect the availability of the products to the consumers,” it said.

The findings recognized that imposition of anti-dumping duties could affect the cost of solar power projects relying on dumped imports from the subject countries but pointed out that fair competition in the Indian market would not be reduced by the anti-dumping measures, particularly if the levy of the anti-dumping duty was restricted to an amount necessary to redress the injury to the domestic industry. It stressed that imposition of anti-dumping measures would remove the unfair advantages gained by dumping practices, prevent decline of the domestic industry and help maintain availability of wider choice to the consumers.

According to ISMA, the import of solar products into India last year totaled Rs. 6,000 crore but Indian manufacturers did not get even 2 percent of that business.

“India’s solar manufacturing is now bound to revive and further increase with both local and overseas participation ensuring a robust supply chain with benchmarks in technology and costs,” said H. R. Gupta, Managing Director, Indosolar Limited and Member, ISMA, in response to the recommendation of the Directorate General of Anti-Dumping and Allied Duties.